Introduction
Every financial year brings the same routine, gathering payment summaries, sorting receipts, and working out what you’re actually entitled to claim on your tax return in Perth. Yet many people still leave money on the table simply because they’re unaware of deductions that genuinely apply to their situation.
This guide covers the key deadlines to keep in mind and some of the most commonly missed deductions, along with mistakes worth avoiding before you lodge.
The Main Issue: Deadlines and Deductions Are Often Misunderstood
Many taxpayers know the general 31 October deadline exists but aren’t aware that using a registered tax agent can extend this significantly, provided you’re registered with them before that date. Similarly, deductions people are entitled to often go unclaimed simply because they’re unaware they qualify.
This combination of deadline confusion and under-claimed deductions is one of the more avoidable aspects of the tax return process, mostly solved by understanding the rules that actually apply to your situation.
Key Considerations
- Standard deadline: Self-lodged returns are generally due by 31 October each year.
- Extended deadlines: Registering with a tax agent before 31 October can extend your lodgement deadline into the following year.
- Commonly missed deductions: Union fees, income protection insurance premiums, and minor work-related expenses like stationery or a portion of phone/internet use for work purposes.
- Substantiation: Most deductions require records, though some categories have specific ATO-set thresholds for reduced documentation.
- Prior year amendments: If you missed a deduction in a previous year, amendments are generally possible within a set timeframe.
Practical Guidance
Keep a simple, ongoing record throughout the year of work-related purchases, mileage for work travel, and any donations, rather than trying to reconstruct this from memory at tax time. Digital receipt storage apps can make this considerably easier.
Before lodging, review your circumstances for less obvious deductions, such as a home office portion of expenses if you work from home regularly, or self-education costs directly related to your current role. A tax return accountant in Perth can help identify what genuinely applies to you.
Common Mistakes to Avoid
- Missing the 31 October deadline without registering with a tax agent beforehand.
- Under-claiming deductions out of uncertainty about eligibility.
- Over-claiming without proper substantiation, which can trigger ATO review.
- Forgetting to declare all income sources, including bank interest.
- Not reviewing prior returns for missed deductions that could still be amended.
When Professional Help May Be Useful
If you’re unsure about deduction eligibility, have multiple income sources, or simply want confidence that your return is accurate and optimised, professional tax return services in Perth typically provide more thorough review than a self-managed return.
It’s also worth seeking help if you’ve missed deadlines in previous years or received ATO correspondence you’re unsure how to respond to, since a registered tax agent can help you navigate this appropriately.
Conclusion
Understanding both the deadlines that apply to you and the deductions you’re genuinely entitled to claim can make a meaningful difference to your tax outcome each year. A little organisation throughout the year, rather than a last-minute scramble, tends to pay off.
TFP Tax Accountants offers tax return services for individuals across Perth. Try our tax calculator for a general estimate, or contact us before the deadline approaches.
Frequently Asked Questions
1. When is the tax return deadline in Australia?
Self-lodged tax returns are generally due by 31 October each year. If you register with a registered tax agent before this date, you may be eligible for an extended lodgement deadline into the following year.
2. What happens if I miss the tax return deadline?
Missing the deadline without a valid extension can result in penalties from the ATO, though these are sometimes remitted for first-time or minor delays. It’s best to lodge as soon as possible or contact the ATO or a tax agent if you’re behind.
3. What deductions do people commonly forget to claim?
Commonly missed deductions include income protection insurance premiums, union or professional association fees, a portion of phone and internet costs used for work, and minor work-related purchases like stationery or uniforms.
4. Can I claim a home office deduction if I work from home?
Yes, if you work from home regularly, you may be able to claim a portion of related expenses using an ATO-approved method. The specific approach and eligible amount depend on your work arrangement and record-keeping.
5. Do I need receipts for every deduction I claim?
Generally yes, though the ATO allows certain claims up to specific thresholds with reduced documentation requirements. It’s best to keep records for all claimed expenses to support your return if reviewed.
6. Can I amend a previous tax return if I missed a deduction?
Yes, the ATO generally allows amendments within a set timeframe (commonly two years for most individuals) from the date of the original assessment, so previously missed deductions can often still be claimed.
7. How much does using a tax agent typically extend my deadline?
The extension varies depending on your specific circumstances and the tax agent’s own lodgement program, but registering with an agent before 31 October is the key requirement to become eligible for any extension.
8. Is bank interest income something I need to declare?
Yes, all interest earned on savings accounts and term deposits must be declared as income, even if it wasn’t the primary source of your earnings for the year.
9. What’s the risk of over-claiming deductions?
Over-claiming without proper substantiation can trigger an ATO review or audit, potentially resulting in penalties and interest charges if the claims are found to be inaccurate or unsupported by records.
10. Can self-education expenses be claimed on a tax return?
Self-education expenses can generally be claimed if the course is directly related to your current employment and maintains or improves skills required for that role. Courses unrelated to your current job typically aren’t deductible.
